Bitcoin on the Brink: Active Supply Signals Potential Rally

Bitcoin's active supply is down, mirroring conditions before past rallies. Is this the calm before the next big surge? Dive into the on-chain data and market analysis.

Bitcoin on the Brink: Active Supply Signals Potential Rally

Bitcoin's showing signs of a potential breakout! Active supply is down, reminiscent of conditions preceding previous rallies. Is this the calm before the storm? Let's dive in.

Bitcoin Consolidates Below All-Time High

Bitcoin has surged 45% since its April low, now hovering just below its all-time high. After weeks of consolidation, the market stands at a crucial juncture. The next few days could determine whether we see a push into price discovery or a pullback to key support levels.

On-Chain Metrics Hint at Opportunity

Data from CryptoQuant reveals a significant drop in Bitcoin's active supply percentage. This metric, tracking coin movement compared to the previous month, currently sits at -17%. According to Axel Adler, this decline mirrors conditions seen before a major rally in September 2024. When fewer coins move, a tightening effect builds, setting the stage for sharp upward moves when demand returns.

Bullish Momentum Builds

The weekly chart shows Bitcoin consolidating below its all-time high, maintaining consistent higher lows since April. The 50-week moving average reinforces the medium-term uptrend. Despite recent rejections, bulls have defended weekly closes above $100,000, indicating market participants anticipate a breakout.

A Trump-Linked Venture Enters the Fray

In other news, American Bitcoin Corp., backed by Eric Trump and Donald Trump Jr., is moving toward its Nasdaq debut. The merger with Gryphon Digital Mining aims to consolidate and scale Bitcoin mining operations. This move reflects the broader trend of consolidation in the crypto mining sector post-halving.

BONK Shows Signs of Reversal

Meanwhile, BONK is showing early signs of reversal after weeks of downside pressure. Technical structures have turned positive with EMA and volume confirmation, potentially targeting higher levels if momentum is maintained.

Looking Ahead

All eyes are on Bitcoin's next move. With favorable macro conditions and low on-chain velocity, a surge into new highs could trigger the next expansion phase. Will Bitcoin break through? Only time will tell!

So, buckle up, crypto enthusiasts! It seems like Bitcoin is brewing something exciting. Whether it's a moonshot or a minor setback, one thing's for sure: the ride is never dull. To the moon... maybe?